US pharma deal value surged to $65bn in Q1 2026, driven by patent expirations and pipeline diversification needs.
US biopharma mergers and acquisitions reached $65bn in Q1 2026, the highest quarterly total since 2020. The surge was fueled by large-scale deals as companies sought to replenish pipelines amid a historic patent cliff, with over $300bn in branded revenue at risk by 2030.
Analysts noted a shift toward mid-cap biotech and bolt-on acquisitions, particularly in high-growth areas like GLP-1 drugs, RNA therapeutics, and antibody-drug conjugates. The industry faces unprecedented loss of exclusivity, with only 4% of global drug sales under patent protection by 2030, down from 12% in 2022.
Eli Lilly exemplified the trend, leveraging strong cash flows from weight-loss drugs to pursue aggressive M&A strategies in 2026. The firm’s approach reflects broader industry efforts to offset revenue declines through targeted acquisitions.